Use the following tax rates, ceiling and maximum taxes:

*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.

Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:

1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimals places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).

2. If the third decimal place is 5 or more, round to the next higher cent.

3. If the third decimal place is less than 5, drop the third decimal place.

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

During 20, Garr was paid a weekly salary of $2,540. The amount of FICA to be withheld from the following payments is:

		OASDI	HI
a)	For the 50th week	__________	__________
b)	For the 51st week	__________	__________
c)	For the 52nd week

Transcribed Image Text:

Employee and Employer OASDI: 6.20% Employee* and Employer HI: 1.45% 12.4% Self-employed OASDI: Self-employed HI: 2.9% $127,200 No limit $127,200 No limit $7,886.40 No maximum $15,772.80 No maximum Employee and Employer OASDI: 6.20% Employee* and Employer HI: 1.45% 12.4% Self-employed OASDI: Self-employed HI: 2.9% $127,200 No limit $127,200 No limit $7,886.40 No maximum $15,772.80 No maximum

Answer rating: 100% (QA)

OASDI HI a For the 50th week 15748 3683 b For the ... View the full answer